How do companies develop true leaders? Matthew Igel of recruitment agency Kelly Services says that it’s a process that must come from the top, with those already in management positions setting good examples and investing in proper training — good leadership comes from within the corporate environment.

People a lot smarter than I am have been debating the difference between "managers " and "leaders" roughly since the study of leadership became an academic science.

Just to refresh the memories of those who have not paid much attention to this debate — the difference between the two, as I understand it, is that managers simply achieve objectives, plan budgets, develop and execute ideas and prime subordinates.

Whereas leaders do these things and more, as they aim to inspire the people who work with them. Their business objectives may be the same as a manager’s, but beyond the bottom line or the next item on the agenda, they work to develop their organization’s sense of spirit and teamwork. Good leadership will unlock employee potential by motivating workers to reach further than they normally would under the traditional management-by-objectives approach.

I think it is safe to say that most good managers strive to be good leaders, and many of them are. One of the first things they tell you about being a good leader is that you have to be a good follower — meaning you need to listen to other people and learn from them. In this sense, I believe all managers do need to have at least some leadership skills.

Role models

How does a company develop good leaders? Depending on the size of a company, on its resources and on its corporate culture, there are a variety of things that can be done.

Larger companies are more likely to invest in training programs, whether in-house or conducted by an outside firm. But what about medium- and smaller-sized companies whose pockets are not as deep? No matter what kind of resources a company has, the impulse to cultivate leadership must begin at the top and has to start "at home" — meaning within the organization itself.

Without any formal management or a leadership-training program, most of us learn how to lead by watching the way our boss, peers and colleagues work. It’s from their successes and mistakes that we get ideas on how to make ourselves more capable managers and leaders. Having a positive role model with whom you work closely is probably the most effective way to develop leadership skills.

After all, leadership can be taught. But it does require some basic qualities, such as confidence and common sense. Some people seem to have a head start. Think about the one or two kids you knew growing up who were natural leaders at school. No one taught them leadership in fourth grade.

Our approach

Most of Kelly’s requests for mid- and upper-level staff are for managers, although occasionally a client will give a detailed job description for a position and close by saying, "Look, I need a real leader here." That helps focus our search on certain types of individuals with leadership qualities that show up in an assessment center and sometimes, in a standard interview. But more often than not, companies are looking for managers and seem to want to grow them into leaders on their own.

What we look for most in managers can be characterized by the following competencies: "Drives for Results,” "Thinks Strategically" or "Demonstrates Initiative." Often we want a candidate to give us concrete examples where he or she was required to, for instance, drive for results. The question may be something as simple as, "Tell me when you last achieved your budget target. How did you accomplish that?"

As the person answers, we listen for certain clues that will let us know whether or not the person is consistently able to achieve results. Essentially, we aren’t as interested in what candidates do, but how they do it. And to figure out how candidates approach problem solving, we not only use an interview, but also other assessment center tools like group exercises and presentations.

Assessment centers are usually conducted when there are multiple openings for the same or similar positions in a company. Candidates going through the assessment realize that only the top performers are going to advance, much the same as in a sports tournament. Certainly this causes stress, but it also motivates people to achieve their best performance.

The three competencies

The three competencies mentioned above — "Drives for Results,” "Thinks Strategically," and "Demonstrates Initiative" — are key in management and leadership, not just in Russia, but everywhere. Our clients constantly demand managers from Kelly who achieve results even under adverse circumstances, who see the big picture, not focus just on today’s objectives, and who develop and execute their own successful plans.

Learning what it takes to become an effective leader is the subject of volumes of study. University professors throughout the four corners of the earth earn decent sums studying this stuff full-time. Personally, I think I’ve spent too much time managing people over the last few years and too little leading them. I wish I had the key to the leadership code, but my hunt still continues.

Leadership is a topic that deserves greater discussion in Russia, a greater exchange of views and more commentary. We’ve spent too much time talking about the 1998 financial crisis and oil prices. However, much of our coming success will come from developing the country’s managers who will lead businesses into the future.